Last week, Texas-based broker Luz de Amor Eytalis took legal action against the National Association of Realtors (NAR), Texas Realtors, and the Wichita Falls Realtors, accusing them of engaging in monopolistic practices.
Despite a recent settlement related to a commission lawsuit, the NAR still grapples with ongoing antitrust issues.
Allegations of Monopolistic Practices
Eytalis has filed an updated lawsuit in the U.S. District Court in Wichita Falls, claiming that the NAR’s requirement for Realtors to join local, state, and national associations represents an illegal “tying agreement” that violates antitrust regulations.
She argues that these organizations have acted in ways that significantly restrict competition within the real estate industry.
In her view, brokers face an unjust obligation to obtain memberships in associations that aren’t essential to their business just to gain access to Multiple Listing Service (MLS) options.
This setup, she contends, has enabled the creation of a monopoly over MLS services, limiting the market’s potential to nurture alternative trade associations and infringing upon the principles laid out in the Sherman Act.
Details of the Lawsuit
The lawsuit names several defendants, including the Texas Association of Realtors (TAR), the Wichita Falls Association of Realtors (WFAR), and Paragon MLS Connect, which provides the technology behind MLS systems.
Eytalis is pursuing $5.8 million in damages, along with unspecified restitution and punitive damages.
She is also calling for a jury trial and seeks a court ruling that would identify the membership agreements as violations of antitrust laws.
Additionally, she advocates for the development of an alternative MLS system that would allow access without the necessity of belonging to all three associations.
Eytalis pointed out that these practices particularly disadvantage minority professionals, leading to unfair rule enforcement and preventing equitable access to the real estate market.
Broader Context and Respondents
This lawsuit is part of a broader wave of similar legal challenges emerging in states such as Michigan, Pennsylvania, and California.
In response, a spokesperson for the NAR stated that they would contest these allegations in court and clarified that MLS access is not limited to NAR members, as each MLS establishes its own participation criteria.
As of now, the other entities named in the suit have not commented on the ongoing litigation.
Source: Housingwire